Earlier this week, it was revealed Oracle Homes was asking homebuyers for up to $122,000 for price variations due to cost blowouts.
With a fixed price contract the homebuyer is not required to pay any more than what was initially agreed to in the contract but it does not prevent the buyer from contacting the homebuyer to negotiate.
“We’ve just seen, as a result of the Ukrainian conflict, the federal government impose tariffs on goods coming out of that region and the immediate impact has been a 25 per cent increase on engineered wood products,” Bidwell said. “Sothat will add $6000 to $11,000 depending on how big the house is. “Who would have figured that that would have happened, two months ago?”
After high-profile builders Probuild and Condev declared insolvency, a number of smaller subcontractors,builders and construction firms are barely managing to stay afloat. Others are looking to find ways to solvent and meet their obligations.
You can read the rest of the story from the Urban Developer here
Kelvin Mason || 0477 555 014 Residential & Commercial FinanceAustralian Credit Licence 390222 | ABN 48638048343Lets connect on LinkedIN
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